Conventional Indicators

One thing some of you asked about is how to use some conventional indicators other then 3C. I'm going to cover just 3 that I feel are important and can be used in a way that the crow doesn't use them to show you something different.

Here are the intraday charts of the SPY for today.

 First I have the much forgotten ROC (Rate of Change) applied to price by using a 1 bar moving average and making it invisible. You can see ROC called the first positive divergence easily, the second divergence was harder to see, but if you compared the relativity of price at the highs and at the dip, you'll see ROC stayed constant, so that's the second positive divergence. The last divergence was on the rally and it was negative as price went higher, ROC went lower.

Above is the same ROC just zoomed in, plus MACD Histogram set to 26/52/3, which is about double the length most people use it, it reduces noise and shows the trend clearer. You can see the MACD negative divergence on the rally highs. I also have a 14 period Wilder's RSI confirming  the negative divergence. There you have 3 indicators all confirming each other, an excellent time to add to those shorts as we knew there would be a rally, this is a good way of timing the top.

One last indicator, Linear Regression. I have this on a 5 min chart set to a period of 80 and width of 30.

This is what I call a Channel Buster and whenever you have a clearly defined trend using LR and you get a big move out side of the channels, it's always a cautionary warning, especially when the candlesticks are showing longer upper wicks on the breakout like we see here, this is telling us that higher prices are being rejected. You should always check other indicators on a channel buster to see if there's cause for concern.